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Experts Predict Rise in Stablecoin Inflow Despite Current Outflow Trend

According to CryptoQuant, the outflow of stablecoins from spot markets has been on the rise, while the inflow has decreased. The data shows that currently, the second-tier outflow of stablecoins is more prominent than the inflow.

Stablecoins are cryptocurrencies that are designed to maintain a stable value by pegging their value to an external asset, such as the US dollar. They have become increasingly popular in the crypto market as they provide a way to hedge against the volatility of other cryptocurrencies.

Source: CryptoQuant

The data shows that during the early March instability of USDC, where the stablecoin reached a price of $20,000, there was hardly any outflow from spot exchanges. However, the situation seems to have changed recently, with a significant shift towards outflow.

While the data suggests that the outflow of stablecoins from spot markets is currently more prominent than the inflow, experts believe that this trend may not last for long. They predict that the numbers will rise again, but they do not foresee a situation where it will continuously surpass previous highs.

Several factors may have contributed to the current trend of outflow from spot markets, including regulatory uncertainty, market volatility, and the increasing popularity of decentralized finance (DeFi) platforms.

Stablecoins are an essential component of the crypto market, and their movement can have a significant impact on the overall market. As the trend towards outflow continues, it will be interesting to see how the market responds and whether stablecoins will continue to play a crucial role in the future of cryptocurrency.

In conclusion, the data from CryptoQuant suggests that there has been a significant shift in the movement of stablecoins, with the outflow from spot markets increasing while the inflow has decreased. While experts predict that the numbers will rise again, they do not foresee a situation where it will continuously surpass previous highs. As the market continues to evolve, it will be interesting to see how the movement of stablecoins affects the overall cryptocurrency market.

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